Financial results for the first quarter of 2018 compared to the first
quarter of 2017:ii

Revenue increased 12% to $127.8 million for the first quarter of 2018
from $114.2 million for the first quarter of 2017.

Professional management revenue increased 13% to $120.8 million for
the first quarter of 2018 from $106.9 million for the first quarter of
2017.

Net income increased 39% to $17.5 million for the first quarter of
2018 from $12.6 million for the first quarter of 2017.

Diluted earnings per share increased 35% to $0.27 per share for the
first quarter of 2018 from $0.20 per share for the first quarter of
2017.

Non-GAAP adjusted EBITDAii increased 21% to $42.6 million
for the first quarter of 2018 from $35.4 million for the first quarter
of 2017.

Non-GAAP adjusted net incomeii increased 41% to $30.3
million for the first quarter of 2018 from $21.5 million for the first
quarter of 2017.

Non-GAAP adjusted earnings per shareii increased 42% to
$0.47 for the first quarter of 2018 from $0.33 for the first quarter
of 2017.

Key operating metrics as of March 31, 2018:iii

Assets under contract (“AUC”) were $1.22 trillion.

Assets under management (“AUM”) were $169.3 billion.

Professional management clients were approximately 1,077,000.

The asset enrollment rate across all employer plans was 12.8%iv.

“We are off to a solid start in the first quarter of 2018 by adding $8
billion in new assets under management,” said Larry Raffone, president
and chief executive officer of Financial Engines. “We are pleased with
the momentum in the business and, as we look ahead, we believe we are
well-positioned and confident in our ability to deliver upon our
long-term growth strategy.”

Review of Financial Results for the First Quarter of 2018

Revenue increased 12% to $127.8 million for the first quarter of 2018
from $114.2 million for the first quarter of 2017, driven primarily by
the growth in professional management revenue which increased 13% to
$120.8 million for the first quarter of 2018 from $106.9 million for the
first quarter of 2017.

Costs and expenses increased 4% to $101.1 million for the first quarter
of 2018 from $97.1 million for the first quarter of 2017. Marketing
expense increased due to higher campaign volumes and increased spending
in the retail channel and employee-related expenses such as wages and
cash incentive compensation expense increased due primarily to headcount
growth and annual compensation increases. As a percentage of revenue,
cost of revenue was 43% for the first quarter of 2018 compared to 45%
for the first quarter of 2017.

Income from operations was $26.7 million for the first quarter of 2018
compared to income from operations of $17.1 million for the first
quarter of 2017. As a percentage of revenue, income from operations was
21% for the first quarter of 2018 compared to 15% for the first quarter
of 2017.

The Company’s effective tax rate for the first quarter of 2018 was 36%
compared to an effective tax rate of 26% in the first quarter of 2017.
Net income was $17.5 million, or $0.27 per diluted share, for the first
quarter of 2018 compared to net income of $12.6 million, or $0.20 per
diluted share, for the first quarter of 2017. On a non-GAAP basis,
adjusted net incomeii was $30.3 million and adjusted earnings
per shareii were $0.47 for the first quarter of 2018 compared
to adjusted net income of $21.5 million and adjusted earnings per share
of $0.33 for the first quarter of 2017.

Assets Under Contract and Assets Under Management

Workplace AUC increased by 10% year-over-year to $1.22 trillion as of
March 31, 2018 from $1.11 trillion as of March 31, 2017, due primarily
to market performance, contributions, and new employers making the
Company’s services available, partially offset by cancellations and
withdrawals.

AUM increased by 17% year-over-year to $169.3 billion as of March 31,
2018 from $144.4 billion as of March 31, 2017. The increase in AUM was
driven primarily by new assets from new and existing clients and market
performance, partially offset by cancellations and withdrawals.

Q1'18

Q4'17

Q3'17

Q2'17

(In billions)

AUM, beginning of period

$

169.4

$

160.2

$

151.8

$

144.4

New assets - new clients(1)

5.4

6.4

5.4

5.3

New assets - existing clients(2)

2.6

2.5

2.5

2.4

Asset cancellations -voluntary(3)

(2.4

)

(2.1

)

(1.6

)

(1.6

)

Asset cancellations - involuntary(4)

(2.2

)

(3.3

)

(1.9

)

(3.3

)

Assets withdrawn - existing clients(5)

(0.2

)

(0.2

)

(0.2

)

(0.1

)

Net new assets

3.2

3.3

4.2

2.7

Market movement and other(6)

(3.3

)

5.9

4.2

4.7

AUM, end of period

$

169.3

$

169.4

$

160.2

$

151.8

(1)

New assets from new clients represents the aggregate amount of new
AUM, measured at or near the end of the quarter, from new clients
who enrolled in its professional management service.

(2)

New assets from existing clients represents the aggregate amount of
new AUM within the quarter from existing clients who originally
enrolled in its professional management service during a prior
period, including employee and employer contributions of $2.3
billion for the current period. Employer and employee contributions
are estimated each quarter from annual contribution rates based on
data received from plan providers or plan sponsors.

(3)

Voluntary cancellations represent the aggregate amount of assets,
measured at or near the start of the quarter, for clients who have
voluntarily terminated their professional management service
relationship within the period.

(4)

Involuntary cancellations represent the aggregate amount of defined
contribution assets, measured at or near the start of the quarter,
for clients whose professional management service relationship was
terminated within the quarter period for reasons other than a
voluntary termination.

(5)

Assets withdrawn represents the amount of voluntary withdrawals from
IRA and taxable accounts by existing clients.

(6)

Market movement and other represents factors affecting AUM including
estimated market movement, plan administrative and investment
advisory fees, client loans, hardship and other defined contribution
account withdrawals, and timing differences for the data feeds for
clients enrolled in its professional management service throughout
the period.

For further information on the AUM data above, please refer to the
Company’s Form 10-Q to be filed for the period ended March 31, 2018.

Aggregate Investment Style Exposure for Portfolios Under Management

As of March 31, 2018, the approximate aggregate investment style
exposure of the portfolios we managed was as follows:

Domestic equity

46

%

International equity

29

%

Bonds

23

%

Cash and uncategorized assets(1)

2

%

Total

100

%

(1)

Uncategorized assets may include CDs, options, warrants and other
vehicles not currently categorized.

Quarterly Dividend

On May 1, 2018, Financial Engines’ Board of Directors declared a regular
quarterly cash dividend of $0.08 per share of the Company’s common
stock. The cash dividend will be paid on July 6, 2018 to stockholders of
record as of the close of business on June 22, 2018.

Subsequent Event

On April 29, 2018, the Company entered into a definitive agreement to be
acquired by funds affiliated with Hellman & Friedman in an all-cash
transaction that values the Company at an aggregate value of
approximately $3.02 billion. Under the terms of the merger agreement,
the Company’s stockholders will receive $45.00 per share in cash upon
the closing of the transaction. The obligation of the parties to
complete the merger is subject to customary closing conditions,
including, among others, approval by the Company’s stockholders and
regulatory approvals. The merger is currently expected to close in the
third quarter of 2018.

Conference Call

As a result of the proposed merger, the Company will not host an
earnings conference call, provide earnings outlook or publish
supplemental earnings presentation slides.

About Non-GAAP Financial Measures

This press release and its attachments include certain non-GAAP
supplemental performance measures. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with U.S. generally accepted accounting principles (GAAP).
These non-GAAP measures include non-GAAP adjusted EBITDA, non-GAAP
adjusted net income, and non-GAAP adjusted earnings per share. Adjusted
EBITDA represents net income before net interest expense (income),
income tax expense (benefit), depreciation, amortization of intangible
assets, including internal use software amortization of deferred set up
costs, amortization of deferred bonus, amortization of deferred sales
commissions, and non-cash stock-based compensation. Adjusted net income
represents net income before non-cash stock-based compensation expense,
amortization of intangible assets related to assets acquired, including
customer relationships, trade names and trademarks, expenses related to
the closing and integration of acquisitions and certain other items, if
applicable for the period, partially offset by the related tax impact of
these items. Adjusted earnings per share is defined as adjusted net
income divided by the weighted average of dilutive common share
equivalents outstanding. Further information regarding the non-GAAP
performance measures included in this press release, including a
reconciliation of non-GAAP financial measures to the most directly
comparable GAAP measures, is contained in the financial tables and will
be contained in the Company’s Form 10-Q to be filed for the quarter
ended March 31, 2018.

To supplement the Company’s consolidated financial statements presented
on a GAAP basis, management believes that these non-GAAP measures
provide its Board of Directors, management and investors with additional
information and greater transparency with respect to our performance and
decision-making. We feel these performance measures provide investors
and others with a better understanding and ability to evaluate our
operating results and future prospects, and provides the same
performance measurement information as utilized by management. These
adjustments to the Company’s GAAP results are made with the intent of
providing both management and investors a more complete understanding of
the Company’s underlying operational results, trends and performance.

Our management uses non-GAAP adjusted EBITDA, adjusted net income and
adjusted earnings per share as measures of operating performance, for
planning purposes, including the preparation of annual budgets, to
allocate resources to enhance the financial performance of our business,
to evaluate the effectiveness of our business strategies and in
communications with our Board of Directors concerning our financial
performance. In addition, management currently uses non-GAAP measures in
determining cash incentive compensation.

About Financial Engines

With roots in Silicon Valley, Financial Engines is the nation’s largest
independent investment advisor. We believe that all Americans -- not
just the wealthy -- should have access to high-quality, unbiased
financial help and our client’s best interests should always come first.
Today, more than 750 of the nation’s most respected employers
trust Financial Engines to deliver professional financial help to more
than ten million employees nationwide.

This press release and its attachments contain forward-looking
statements that involve risks and uncertainties. These forward-looking
statements may be identified by terms such as “plan to,” “designed to,”
“allow,” “will,” “can,” “expect,” “estimates,” “believes,” “intends,”
“may,” “continues,” “to be” or the negative of these terms, and similar
expressions intended to identify forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding: our strategic focus; investment and growth strategy;
Financial Engines’ expected financial performance and outlook, including
reconciliation information related thereto and factors which may impact
our outlook; the benefits and anticipated uses of our non-GAAP financial
measures, and the timing, completion and impact of the proposed merger.
These statements involve known and unknown risks, uncertainties and
other factors which may cause actual results, performance or
achievements to differ materially from those expressed or implied by
such forward-looking statements, and reported results should not be
considered as an indication of future performance. These risks and
uncertainties include, but are not limited to risks related to the
occurrence of any event, change or other circumstance that could give
rise to the termination of the merger agreement; the failure to obtain
the Company stockholder approval or the failure to satisfy any of the
other conditions to the completion of the merger; the effect of the
announcement of the merger on the ability of the Company to retain and
hire key personnel and maintain relationships with its clients,
providers, partners and others with whom it does business, or on its
operating results and businesses generally; risks associated with the
disruption of management’s attention from ongoing business operations
due to the merger; the ability to meet expectations regarding the timing
and completion of the merger; our reliance on fees earned on the value
of assets we manage for a substantial portion of our revenue; the impact
of the financial markets on our revenue and earnings; unanticipated
delays in rollouts of our services; our ability to increase enrollment;
our ability to correctly identify and invest appropriately in growth
opportunities; our ability to introduce new services and accurately
estimate the impact of any future services on our business; the risk
that the anticipated benefits of our investments in these services or in
growth opportunities may not outweigh the resources and costs associated
with these investments or the liabilities associated with the operation
of these services; our relationships with plan providers and plan
sponsors; the fees we can charge for our professional management
service; our reliance on accurate and timely data from plan providers
and plan sponsors; system failures, errors or unsatisfactory performance
of our services; our reputation; our ability to protect the
confidentiality of plan provider, plan sponsor and plan participant data
and other privacy concerns; acquisition activity involving plan
providers or plan sponsors; industry trends and pricing pressures;
changes in our pricing policies or those of our competitors; our
regulatory environment, and risks associated with our fiduciary
obligations. More information regarding these and other risks,
uncertainties and factors is contained in the Company’s Form 10-Q for
the quarter ended March 31, 2018, as filed with the SEC, and in other
reports filed by the Company with the SEC from time to time, including
the Company’s 10-K filed for the year ended December 31, 2017. You are
cautioned not to unduly rely on these forward-looking statements, which
speak only as of the date of this press release. All information in this
press release and its attachments is as of the date stated or May 9,
2018 and unless required by law, Financial Engines undertakes no
obligation to publicly revise any forward-looking statement to reflect
circumstances or events after the date of this press release or to
report the occurrence of unanticipated events.

Information regarding enrollment rates and the component AUC can be
found in the section entitled “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in the Company’s
Securities and Exchange Commission (“SEC”) filings, including the
Form 10-K for the year ended December 31, 2017.

Common stock, $0.0001 par value - 500,000 authorized as of March
31, 2018 andDecember 31, 2017; 65,168 and 64,725 shares
issued and 63,492 and 63,049 sharesoutstanding as of March
31, 2018 and December 31, 2017, respectively